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PAK CHINA ECONOMIC CORRIDOR

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it's a Ms.word format assignment on PAK China economic corridor. i was made it for Macro economic Assignment and got 10/10 marks.

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PAK CHINA ECONOMIC CORRIDOR

  1. 1. AmirWali Khan (E-MBA) ID:10093 amir.anjas@gmail.com Date: 29th August 2015 Assignment #2 CHINA PAKISTAN ECONOMIC CORIDOR Subject: Eco-ii (Macro Economics) Submitted To, Sir, Muhammad Aftab Ahmed Abro Submitted By, Amir Wali Khan ID:10093
  2. 2. AmirWali Khan (E-MBA) ID:10093 amir.anjas@gmail.com PAK CHINA ECONOMIC CORRIDOR HISTORY AND INTRODUCTION “Our friendship is “higher than the mountains, deeper than the oceans, stronger than steel, dearer than eyesight, sweeter than honey” As above statement we can say China Pakistan economic friendships is not new it was start very begging but in recent project China is investing huge money of US $46 billion. According to First post Report of China “This is the biggest overseas investment by China announced yet and the corridor is expected to be operational within three years and will be strategic game changer in the region which would go a long way in making Pakistan a richer and stronger entity the over before.” A total of 51 memoranda of understanding were signed in diverse sector between China and Pakistan during visit of Chinese President of Pakistan on 20 April 2015. Major projects under the corridor umbrella are:  Gawadar Port,  Upgrading of Karachi toPeshawar main line Khunjerab Railway  Karachi-Lahore Motorway (KLM)  Hazara Motorway  Iran-Pakistan gas pipeline  Economic corridor support force  Upgrading of Gawadar international Airport.  Jhimpir wind Power Project.  Havelian Dry Port.
  3. 3. AmirWali Khan (E-MBA) ID:10093 amir.anjas@gmail.com And so many big and small projects are listed in this economic corridor and this entire project expected to be complete in several years. OBJECTIVES OF PAK-CHINA ECONOMIC CORRIDOR These are the main objectives ofChina PAK Economic Corridor.  Increase the volume of trade between Pakistan and china.  Take full advantage of preferential trade agreement(PTA) and free trade agreement (FTA). Increase export to china, recently export to china is $3.14 billion.  Pakistan and china are second largest partners in south Asia this will help to retain partnership.  Widen Karakorum high way and open new economic corridor from china to Gwadar.  Approximately reduce 10000 km distance and it is the shortest route  Expand trade with Afghanistan and it helps both countries to play their role in post-2014 Afghanistan.  Expand trade with Russia by providing trade route till Gwadar port.  Development of infrastructure along Pakistan  China access to the Indian Ocean with the aim of widening its geopolitical influence and military presence in the region  Job opportunities and economic development in Baluchistan  Increase Chinese investment, Pakistani investment in china will also be encouraged.  Regional peace, prosperity and elevate the life of poor people of south Asia.  Enhance trade among Pakistan, China, Gulf States, Central Asia and Africa .  China is interested to extend the IranPakistan pipeline to its western territory
  4. 4. AmirWali Khan (E-MBA) ID:10093 amir.anjas@gmail.com ADVANTAGES OF PAK-CHINA ECONOMIC CORRIDOR China PAK Economic Corridorhas many advantages for both Pakistan and China. These are can be the main advantages.  Can benefit new emerging regional cooperation  Save time, cost and freight charges.  Facilitate trade, have Economic Zone en-route and will allow reaping of full benefits of development, economic and social uplift  Increase the economic collaboration between both countries by connecting western china to Gwadar  Regional stability in Asia as well as whole world  Pakistan economy will Boost  Pakistan can avail great opportunities from chine’s expert in various sectors like energy ,Technology and Education sector  Create new employment opportunities  Pakistan and china both collectively target the half of the population of the world ,it will provide great opportunity for both countries to expend their market
  5. 5. AmirWali Khan (E-MBA) ID:10093 amir.anjas@gmail.com DISADVANTAGES OF PAK-CHINA ECONOMIC CORRIDOR As we know this economic Corridor has many advantages for the both countries but there can be so many disadvantages for both the countries and especially for Pakistan it can be these Disadvantages.  FTA leads to threat for local markets and local manufacturers  Disturb of local industries  Difficult to compete chine’s product in market  Increase the ratio of unemployment  Dependent to China  Focus on import rather than Domestic production Threat for potential group Due to free trade agreement with china leads to lack of competition.
  6. 6. AmirWali Khan (E-MBA) ID:10093 amir.anjas@gmail.com RECOMMENDATION  Pakistan should create stability In its terrority to implementation on that plan  To make positive balance of trade Pakistan should increase exports  Agriculture products  Textile products  Leather  Maintain favourable balance of trade Precious stone Sports goods Textiles products  Restriction on that commodities which is harmful for our industries •  To make a frame work to use Domestic currency for trade (barter system) •  Develop auto industries rather than focusing on import parts  Implementations of agreements should be addressed should provide latest technology Think tank should collaborate by both countries  Pakistan should implement and handle policies up to the mark Utilization of raw material and value added process should be done in Pakistan  Make efforts to diversify market in China  Security issues, law and order system are main obstacles in the way of Pak-china economic corridor  Pakistan should develop the training centers and Chinese language centers in order to make effective communications
  7. 7. AmirWali Khan (E-MBA) ID:10093 amir.anjas@gmail.com CONCLUSION These are the main points that I wants to conclude the mega project China PAK Economic Corridor.  Natural Gateway for China  Positive response by both countries through mutual cooperation  Both countries are keen to enhance trade activities  Infrastructural improvement and Development of Dams  Stability of economy by investment in different sectors “Our friendship is “higher than the mountains, deeper than the oceans, stronger than steel, dearer than eyesight, sweeter than honey” PAK CHINA FRIENDSHIP ZINDABAD

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